AN EXHAUSTIVE REPORT ON BUSINESS CORRESPONDENTS ENGAGED BY STATE BANK OF
We being the speaker of the Business Correspondents engaged by State Bank of
, hereby report the grievances / hardships / hindrances faced by them in regard to conducting kiosk banking. India
1. The prospect customers coming even from rural area want to open joint account with their kith and kins while there is no provision in the present software. Resultantly, some of them are not interested to open accounts, which result a loss primarily to B.Cs. and ultimately to Bank. This provision may be made henceforth.
2. At the time of opening account, if some erroneous feeding has been made, how it will be corrected and who will correct it. Please advise accordingly.
3. As per Bank instructions which are prevalent at other branches of SBI, any minor aged 10 years old can open a SB A/c and operate it, but in the present Kiosk Banking system, it is not possible in case of minor less than 18 years old. Thus, many students studying in high school or intermediate colleges expecting their scholarships have been made incapable to open account in the Kiosk Banking system.
4. Issuance of pass book has not been allowed in the present Kiosk Banking System as per RBO Officers verbal instructions. The prospect customers of villages have no faith and do not rely on the Kiosk Banking System. They raise many questions about this and logics as to why other branches of SBI are issuing pass book and here it is not so.
While in the Kiosk Banking, there is an option to choose whether, the nominee’s name will appear on the pass book or not. It reveals that there is a provision of issuing pass book to the customers. Please arrange to this facility so as we can issue pass books to them.
5. Stationery viz. account opening forms, etc. are not being supplied by RBO sufficiently. For it, we have to make a run often to RBO causing loss of money, time and toil. The officers at RBO say that they would be able to supply the forms etc. as and when it will be made available by LHO and they also advise us to use the photocopy of account opening forms. This perchance is not as per Bank’s instant instructions and also it costs / affects our revenue.
6. B.Cs. settlement account (current account) and Commission account (Savings Bank Account) balance enquiry may be made visible to us. Because for this purpose, we will have to go to our link branch often, this is a hindrance in our working.
7. Balance enquiry of Kiosk Accounts and Non-kiosk accounts (without finger print) may be made available in the Kiosk Banking software, because –
a) In case of cash deposit at Kiosk Banking Point, into Non-kiosk accounts, no balance appears in the deposit slip generated by Kiosk and only amount deposited reflects there, while the customer wants to know / see / confirm the balance of the account in which amount has been deposited. Moreover, we are also not sure whether the amount has been deposited or not.
b) In case of Kiosk accounts- If a person deposits any amount from other branch to kiosk accounts, and wants to confirm telephonically or inditingly, we are at loss to tell him the correct balance / position. This provision may be made for kiosk banking in the interest of public as well as us and the Bank. Otherwise, in case of the amount being astrayed, legal problems may arise in future.
8. At-least to computers connected with each one (networking)-
The prospect customers visit to the CSP at the same time for account opening, cash deposit / withdrawal etc. In such a position, only one type of transaction i.e. either account opening or deposit / withdrawal / balance enquiry is possible, resulting a heavy crowd. This will forfeit the motive of the kiosk banking. This can be avoided by connecting two computers working simultaneously. This provision may be made.
9. Cash remittance in current account is not made possible in kiosk banking at present. Please get it rectified at the appropriate level.
10. Training/ circular instructions etc.-
Training regarding kiosk banking may be provided to the B.Cs. so that any type of errors and omissions can be avoided. The circulars instructions issued by Bank may be provided to B.Cs. directly by way of email etc. to avoid delay. However, no circular instructions are being provided to us on a regular basis. The provision thereof will ultimately be in the interest of Bank.
11. The Branches as well as RBO are not co-operating us to the level to which they are expected. The link branches take a lot of time e.g. 10 to 30 days to authorize opening of accounts created by the CSPs.We propose that we should be linked to such a channel who immediately take up our matters. Their names, address, phone and email address may be made available to us.
12. Insurance of cash holding amount and cash in-transit amount may be arranged at Bank level because the officials of companies under General Insurance Company advise us that there is no provision of insurance of cash handling conducted by individuals. This is necessary to be done by Bank and required fees for insurance may be recovered from us if applicable.
COMMISSION / EXPENSES AVAILABLE TO / INCURRED BY BUSINESS CORRESPONDENTS
Here we illustrate the commission admissible to B.Cs. as per extant instructions and expenses incurred by them.
A) Monthly income / Commission admissible to B.Cs
Current instructions by SBI Commission- 2000/- p.m.
A/c maintenance @ o.50 paisa per account
Per month supposing 2000 accounts
Maintained - 1000/- p.m.
Annual mtce. Due to limit on customers
Account arrives at equal to - nil
TOTAL = 3000/- P.M.
B) MONTHLY EXPENSES INCURRED BY B.CS.
Room rent - 1000/- p.m.
Electricity - 1000/- p.m.
Internet Broad band BSNL rent - 3300/- p.m.
Stationery / printing - 1000/- p.m.
Employee (Substitute min. one) - 3600/- p.m.
(@ Minimum MNREGA)
Sweeper part time - 1500/- p.m.
Depreciation on assets ** - 2350/- p.m.
Interest on fund / cash invested *** - 790/- p.m.
TOTAL - 15490/- p.m.
** Furniture /counter/table etc. - 70000/-
Wiring - 10000/-
Computer/printer/web cam - 31000/-
Finger print scanner - 2600/-
Fans 2 - 2000/-
Inverter / battery - 25000/-
**Depreciation @ 20% 2350/- ________
*** Cash deposit in
- 50,000/- C.A.
Cash in hand - 50,000/-
***Interest on above @ 9.5% 790/- p.m.
LOSS SUFFERED BY B.C. AS PER ABOVE (A – B) =
Rs. 12490/- p.m.
In the above illustration the expenses have been shown at the lowest while the remuneration of B.C. has not been taken into account. This begets a heavy loss to B.C. and resultantly they will have to shut down their outlets. Moreover, in the case of new entrants also, they will face the same financial hurdle and they also will not succeed. There is no remedy except for increasing the commission to a level taking in view the above facts so that this may get success and Bank may also earn revenue from it.
In addition, the Bank and B.Cs. have entered into an agreement in which reasonable commission bases on deposits and withdrawals was devised which was 0.5%, but later the Bank has revised the commission and capped the ceilings of balances etc. resulting the B.C.s to starve. This is felt by B.C.s as a deceit. At this stage while they have invested about 200000/- it is not possible to get rid of such activity.
The above suggestions are from the grass root level from the B.Cs and customers and are ultimately in the interest of Bank.
Hence, it may be taken up sympathetically and rationally.
With best wishes
Chairman- B.C. ASSOCIATION
contact us : email@example.com